HomeMy WebLinkAboutRetirement Committee - Minutes - 07/13/1993FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE
JULY 13, 1993 MEETING MINUTES
COUNCIL LIAISON: Ann Azari, Mayor
MEMBERS PRESENT:
Ann Azari
Jerry P. Brown
Dennis Sumner
Alan Krcmarik
OTHERS PRESENT:
Jackie Davis
Dave Meyer
(Member & Staff Support)
Sue Wilcox (Staff Support - Secretary)
Plan members present: Accounting: Dave
CPES: Claudia Haack -Benedict
Facilities: Bob Jiron Felix Cruz
Planning: Janet Meisel
Police Services: Ruth Hurst
MEMBERS ABSENT:
Agee, Stephanie Schultz
CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:15
p.m. in the Finance Conference Room on July 13, 1993.
APPROVAL OF MINUTES: The minutes of the July 1st meeting were not yet
available for review.
ITEMS OF NOTE: This special meeting was called to review the discussions at
the July 6th City Council meeting as they relate to the GERC.
REVIEW OF DISCUSSION TOPICS: Dennis advised the group that 30 minutes had
been included on the agenda to solicit input from Plan members present or
other visitors. The Committee members agreed to try this and see how it
works. It was suggested that a time limit be set for total meeting length.
It was decided that a firm limit may not be in the best interests of timely,
efficient meetings. Lengthy meetings have been due to the numerous topics
being addressed by the Committee.
DISCUSSION TOPICS:
1. MEMBERS COMMENTS: No member comments were offered.
2. RESPONSE TO CITY COUNCIL REQUEST
MAIN POINTS: Dennis gave a brief summary of the comments from the July 6th
City Council meeting. Since only two Council members addressed concerns
about the retirement plan and retirees' pensions, the comments do not
necessarily reflect the views of the whole Council. Councilmember Bob
Winokur would like to see the cost estimates for various options as soon as
possible. His view is that the Plan should consider such things as cost -of -
living increases and post -retirement medical benefits. He also commented
that the current plan is outdated and should be updated. He suggested using
any savings from the proposed 70 percentile "lag" to fund cost -of -living
(COLA) increases.
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Mayor Azari suggested that changes in defined benefit features of the plan
(e.g. death benefits before age 55 and early vesting) will have an affect on
other issues being considered, i.e. equity among City plans, medical
insurance for retirees, and portability of plan. She also noted that in
light of Total Compensation, there are potential trade-offs. She advised
being prepared to offer opinions and options and making this a topic of
discussion at a work session. Also mentioned was having the Council Finance
Committee and/or the Personnel Board review the information.
There was discussion on the potential of adding a defined contribution option
to the Plan. It was noted there are strong feelings by Plan members on both
sides of this issue: some feel the current plan does not meet their needs,
while others don't want the defined benefit aspects of the Plan changed.
Alan mentioned the difficulties involved in trying to maintain both the
defined benefit and defined contribution options. In the case of Police and
Fire retirement plans, all "new" employees changed to defined contribution
plans and individuals who wished to stay in the "old" plan were given
annuities to provide the same benefit.
Jerry Brown reported that in talking with Don Mazanec, Don stated that if all
GER Plan members decided to accept a lump -sum payment from the current fund
and begin a defined contribution plan, there are sufficient funds in the GERP
to do that now. If there is a split among members (which the survey
indicates there would be), an equitable division of the fund may not be
financially possible.
Jerry was asked to consult with Don and get some firm figures for the August
19th GERC meeting on why these two options would or would not work as things
currently stand. Don had estimated that he could prepare some figures and
educate members on how moving to a defined contribution plan would work,
survey the members for their preference, and then prepare firmer figures on
how it could be accomplished in about 3-6 months. For potential future
reference, it was noted that the actual time needed to accomplish such a
change would be at least 12-18 months, based on the conversions of the Police
and Fire plans, which had significantly fewer members.
CONCLUSIONS/NEXT STEPS: In an effort to respond to Council direction, the
Committee developed the following topics, options, and target dates for
obtaining information:
COSTS FOR VARIOUS CHANGES TO CURRENT PLAN - AUG 19 GERC MEETING -
MERCER
Death benefits before age
benefit or full benefit)
Earlier vesting (100% at 6
Rule of 80 (at 55 years i
years of service)
Cost -of -living increases
Service)
55 (1/2 of normal retirement
months or 100% in 5 years)
years of service or at age +
(model using Federal Civil
5. Medical insurance (model using Federal Civil Service &
existing City plan extended for retirees)
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II. EQUITY AMONG FORT COLLINS PLANS (Cost estimates & time frame) -
6 MONTHS - MERCER, EMP DEV, MAD, & GERC
III. MEDICAL INSURANCE FOR AGES 55-63.5 - 6 MONTHS - MERCER, EMP DEV
& GERC
IV. PORTABILITY & DEFINED CONTRIBUTION PLANS - 6 MONTHS - MERCER & GERC
Dennis and Alan will prepare a memo to go to Council explaining this work
plan and time estimates, and Dennis will attend that Council meeting. Dave
Agee will discuss this with the HAD Committee, Alan will contact Jaime, and
Jerry Brown will talk to Police Department representative Greg With about a
peer group for answering questions.
3. OTHER BUSINESS
When the Committee reviews the actuarial report at the next meeting, Dave
Agee (representing the MAD (an acronym for the first names of Mary Crumbaker,
Ann Turnquist, and Dave Agee) subcommittee of the Staff Pension Review group)
would like to comment on the change in asset valuation and other areas of the
report. MAD may be helpful in working with Employee Development to ensure
that no employees are unaccounted for in any step of the process. Jerry is
the liaison to the MAD committee.
ITEMS FOR FUTURE DISCUSSION
1. Settlements with retired employees with low monthly benefits
2. GERP / Workers Comp / Disability Proposal
3. Monitor progress by staff Pension Review Group
4. Public pension plan training classes for Committee members
AGENDA & SCHEDULE FOR NEXT MEETING
The next meeting date was changed to Thursday, August 19th at 1:15 p.m. in
the Finance Conference Room. The agenda will include:
1. Actuarial Valuation Report
2. Second Quarter Investment Report
3. Report on E.L. Team consideration of GERP/Workers Comp/Disability
proposal.
4. Action Plan for Exploring Plan Changes
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ADJOURNMENT
The meeting was adjourned at 3:40 p.m.
MEETING SCHEDULE:
The General Employees Retirement Committee meetings are normally held at 1:15
p.m. on the 1st Thursday of each month in the Finance Conference Room. Any
change from that will be noted. (August meeting moved to August 19th.)
THURSDAY, AUGUST 19, 1993
THURSDAY, OCTOBER 7, 1993
THURSDAY, DECEMBER 2, 1993
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THURSDAY, SEPTEMBER 2, 1993
THURSDAY, NOVEMBER 4, 1993